Entitlements Alone Will Eclipse Historical Tax Levels by 2052

Spending for the three major entitlements — Medicare, Medicaid, and Social Security — will more than double in the next 40 years. At this rate, entitlement spending will consume all federal tax revenues by 2052 without major reforms.

Three Major Entitlements and Tax Revenues as a Percentage of GDP, 1965–2082

Source: Spending and Revenues from CBO Long-Term Budget Outlook, December 2007 (Extended Baseline Scenario).